Apple Found Guilty of Conspiring to Fix Prices in E-Book Trial [Updated]

ibooks_iconReuters briefly reports that a U.S. federal judge has found Apple guilty of price fixing in the lawsuit brought by the U.S. Department of Justice and state governments.

A federal judge on Wednesday ruled that Apple Inc conspired to raise the retail prices of e-books, and said a trial for damages will follow.

The decision by U.S. District Judge Denise Cote in Manhattan is a victory for the U.S. government and various states, which the judge said are entitled to injunctive relief.

The government had argued that Apple served as a "ringmaster" in conspiring with publishers to raise prices of e-books as part of an effort to change the business model of the industry and weaken Amazon's dominant position in the market. All of the publishers ultimately settled the case, but Apple fought to the end, insisting that it could not admit to doing something it did not do.

A separate trial will need to be held in order to determine damages to be levied against Apple.

We've uploaded the full 160-page decision by Judge Denise Cote for those interested in reading more.

The question in this case has always been a narrow one: whether Apple participated in a price-fixing scheme in violation of this country’s antitrust laws. Apple is liable here for facilitating and encouraging the Publisher Defendants’ collective, illegal restraint of trade. Through their conspiracy they forced Amazon (and other resellers) to relinquish retail pricing authority and then they raised retail e-book prices. Those higher prices were not the result of regular market forces but of a scheme in which Apple was a full participant.

Update 7:13 AM: Unsurprisingly, Apple has announced that it will appeal the decision.

Apple spokesman Tom Neumayr says Apple didn't conspire to fix e-book pricing and would continue to fight the "false accusations." He says Apple brought much needed innovation and competition into the market in 2010.

Top Rated Comments

(View all)
Avatar
90 months ago
A win for the consumer

Excellent!

A win for the consumer!
Score: 49 Votes (Like | Disagree)
Avatar
90 months ago

Excellent!

A win for the consumer!


A win for the consumer, up until the point at which Amazon finishes driving out any and all competition.
Score: 38 Votes (Like | Disagree)
Avatar
90 months ago
I always felt it was pretty clear that Apple was guilty.
Score: 36 Votes (Like | Disagree)
Avatar
90 months ago
What? You mean Apple is greedy? Eye opener!
Score: 30 Votes (Like | Disagree)
Avatar
90 months ago
Where did she get her law degree at? Night School with Luis Tully?

A publisher setting the price for an eBook in the iBookstore is no different than me, as a developer, setting the price for my app in the App Store.

#EpicFail
Score: 25 Votes (Like | Disagree)
Avatar
90 months ago
This was OBVIOUS after the email from Jobs was released. I am not typically a fan of the word "greedy" to describe companies since they are in business to make money. Unfortunately Apple takes it to a new level, but they have been successful at it.

My guess is that they will pay less than they already paid their counsel.
Score: 24 Votes (Like | Disagree)

Top Stories

Apple's First MacBook Pro With a Retina Display Will Become 'Obsolete' in 30 Days

Monday June 1, 2020 7:50 am PDT by
If you are still hanging on to a Mid 2012 model of the 15-inch MacBook Pro with a Retina display, and require a new battery or other repairs, be sure to book an appointment with a service provider as soon as possible. In an internal memo today, obtained by MacRumors, Apple has indicated that this particular MacBook Pro model will be marked as "obsolete" worldwide on June 30, 2020, just over...

Tim Cook Addresses George Floyd's Death and Ensuing Protests and Riots as Apple Temporarily Closes Some U.S. Stores

Sunday May 31, 2020 8:04 pm PDT by
Amid unrest in numerous U.S. cities following last week's killing of George Floyd by police in Minneapolis, Apple CEO Tim Cook has shared an internal memo with employees (via Bloomberg) addressing the pain that many are feeling and urging others to commit "to creating a better, more just world for everyone." Cook also announced that Apple is making donations to several groups challenging...

Apple Releases macOS Catalina 10.15.5 Supplemental Update With Security Fix

Monday June 1, 2020 10:56 am PDT by
Apple today released a supplemental update for macOS Catalina 10.15.5, the fifth update to the macOS Catalina operating system that was released in October 2019. The supplemental update comes a week after the release of the macOS Catalina 10.15.5 update. ‌macOS Catalina‌ 10.15.5 is a free update that can be downloaded from the Mac App Store using the Update feature in the System...

iOS 14 Again Said to Be Compatible With All iPhones Able to Run iOS 13

Monday June 1, 2020 2:08 pm PDT by
iOS 14 will be compatible with all iPhones and iPod touch models able to run iOS 13, according to information shared today by Israeli site The Verifier. The compatibility data was allegedly found in a leaked version of iOS 14 and confirmed by what The Verifier says is a "trusted source from the system development process." iOS 13 is compatible with the iPhone 6s and later, with a full...

Apple Releases iOS and iPadOS 13.5.1 With Fixes for Recent 'unc0ver' Jailbreak Vulnerability

Monday June 1, 2020 9:58 am PDT by
Apple today released iOS and iPadOS 13.5.1, minor updates that come a little over a week after the release of iOS and iPadOS 13.5, major updates that brought the Exposure Notification API, FaceTime changes, mask-related unlocking updates and more. The iOS and iPadOS 13.5.1 updates are available on all eligible devices over-the-air in the Settings app. To access the updates, go to Settings >...

Mockups Depict iPhone 12 Lineup Sizes, Relocated SIM Tray

Monday June 1, 2020 1:22 pm PDT by
A series of 3D printed iPhone 12 mockups designed based on leaked schematics and info from Apple's supply chain was today shared by Japanese site Mac Otakara, giving us a first look at what we can expect from the 2020 iPhone lineup. Rumors have suggested Apple will release four iPhone 12 models in 2020: A 5.4-inch iPhone 12, a 6.1-inch iPhone 12, a 6.1-inch iPhone 12 Pro, and a 6.7-inch...

Five Mac Apps Worth Checking Out - June 2020

Tuesday June 2, 2020 2:25 pm PDT by
Apps developed for the Mac often don't receive as much coverage as apps designed for iPhones and iPads, so we have a series at MacRumors that highlights interesting Mac apps that are worth taking a look at. This month's apps are designed to make working from home a little bit easier. Subscribe to the MacRumors YouTube channel for more videos. Meeter (Free) - Working from home often...

Apple Music Joins Music Industry's Blackout Tuesday Awareness Campaign

Tuesday June 2, 2020 1:31 am PDT by
Apple Music has cancelled its Beats 1 radio schedule for Blackout Tuesday and is suggesting that listeners tune in to a radio stream celebrating the best in black music. Blackout Tuesday is a campaign organized by the music industry to support Black Lives Matter after Minneapolis citizen George Floyd was killed by police in the course of his arrest. On launching Apple Music, many users...

6.1-inch 'iPhone 12' Production to Begin in July Ahead of Other 2020 Models

Monday June 1, 2020 2:36 am PDT by
Volume production of Apple's forthcoming 6.1-inch "iPhone 12" models will start in July-August ahead of the rest of the company's flagship iPhone lineup this year, according to a new report by DigiTimes. Apple is widely rumored to be launching four new ‌iPhone‌ models in the usual September or October timeframe, although supply constraints and delays in production ramp-up could cause a...

Apple Releases tvOS 13.4.6 for Fourth and Fifth-Generation Apple TV Models

Monday June 1, 2020 9:56 am PDT by
Apple today released tvOS 13.4.6, a minor update to the tvOS operating system that runs on the fourth and fifth-generation Apple TV models. tvOS 13.4.6 comes a little over a week after the release of tvOS 13.4.5. tvOS 13.4.6, a free update, can be downloaded over the air through the Settings app on the Apple TV by going to System > Software Update. Apple TV owners who have automatic software ...